•The initial tender for the LBDA project was Sh2.5 billion, but the authority committed Sh4.5 billion, a variation of more than the 25 per cent permitted by the law.
• The EACC is probing the cost variation in the project and the decision by the authority to use a government agency to secure a loan from the Cooperative Bank without the Attorney General's authorisation.
The Lake Basin Development Authority (LBDA) board has accused the Ethics and Anti-corruption Commission of harassing its officials over alleged economic crimes.
The EACC detectives are investigating the alleged loss of millions of shillings during the construction of the Sh4.5 billion Lake Basin Mall
The initial tender for the LBDA project was Sh2.5 billion, but the authority committed Sh4.5 billion, a variation of more than the 25 per cent permitted by the law.
The EACC is probing the cost variation in the project and the decision by the authority to use a government agency to secure a loan from the Cooperative Bank without the Attorney General's authorisation.
Board chairman Odoyo Owidi questioned why the anti-graft body had taken six years investigating the matter.
Owidi said detectives have visited LBDA offices several times since the inception of the mall in 2013, summoned former chairmen, board members, staff and current staff more than 10 times for investigations.
He was addressing the pressing on Tuesday at the mall following a protest by Kisumu residents on Monday.
He was accompanied by authority's MD Raymond Omollo and other board members.
Residents accused the EACC of an impartial investigation targeting Kisumu speaker Onyango Oloo, a former LBDA chairman between 2014 and 2015.
They claimed the ongoing investigation of former LBDA officials over alleged corruption is a plot to sacrifice certain individuals.
With the numerous summons, Owidi said, no one has ever been charged, despite the cooperation of the authority and the handing over of the required documents or details to EACC officers.
“We are reading mischief in the continued harassment of our staff. The investigations have taken too long,” he said.
The chairman said the investigations and constant negative publicity are the reasons the occupation of the mall is slow.
“It is our position that EACC concludes this matter expeditiously so that the people of Kisumu, the government and LBDA can enjoy the benefits of the multi-billion project,” Owidi said.
The long investigation period has impacted negatively on the uptake of the mall by tenants.
“Business people generally fear controversies and absence of peace,” he said.
In a letter dated July 3, 2019, the board wrote to EACC chief executive officer Twalib Mubarak to protest against the probe and harassment of LBDA officials.
Mubarak is yet to respond to the letter.
The frequent summonses have made it difficult for the staff of LBDA and other government officials to take decisive action on issues of the mall, Owidi said.
He noted that the mall was constructed, completed and handed over by the contractors and declared value for money by key government agencies.
Owidi told the EACC to ensure such level of investigations and follow up in other state agencies, county government, and public institutions, many of which have consumed billions of taxpayers’ money since 2013 but nothing to show.
“Otherwise we would find it difficult but to agree with the demonstrators that there is a biased investigation into the mall,” Owidi added.
He told the EACC officers to read the opinions of other state agencies such as the Auditor General, the State Law Office, Ministry of Housing and the Public Procurement Regulatory Authority, all of which had no issues with the development of the mall.
He clarified that the mall has since been handed over to the authority with a management company recruited and tenants are already in the mall.
“The mall is open to the public and tenants for business. Come and take spaces for businesses,” Owidi said.
Among the tenants already in the mall include Best Western Hotel, Communication Authority of Kenya and Premier Lounge.
LBDA is still in negotiation with international anchor tenants.
He, however, blamed the ongoing road construction as the major reason making potential tenants to shy away.
Kisumu residents led by Erick Okello and Edgar Odoyo said the purported war on corruption over the mall targeting former LBDA officials is political
They accused the EACC of witch-hunt and harassment of LBDA and former officials.
Okello said the payments for the mall by Agriculture Cabinet Secretary Mwangi Kiunjuri, then Devolution CS was done after the former Attorney General Githu Muigai gave the mall a clean bill of health.